State budget has ‘black hole’, says DAP

KUCHING: The state government’s 2012 budget as announced by Chief Minister and Minister of Finance Abdul Taib Mahmud on Monday has a big ‘black hole’ that sucks in everything, said Chong Chieng Jen, DAP state assemblyman for Kota Sentosa.

Chong who is also Sarawak Pakatan Rakyat’s shadow minister of finance was referring to an allocation of RM1.7 billion out of RM3,263 million development fund towards approved agencies trust fund.

More than 50% of the development fund go to these ‘faceless’ agencies which the Opposition had wanted to know in the past few years.

“Nobody knows what these agencies are? And I have been asking the same question for the past few years as to which agencies are using these funds that have repeatedly appeared in the State Development Expenditure allocated to the Ministry of Finance.

In 2007, the allocation under this heading was RM1,257,000,000, and in 2008 it was increased to RM1,719,083,100, and 2009 to RM1,825,061,000.

For 2010, the fund went down to RM1,072,409,800, and this year it went up again to RM1,416,475,000.

For next year, the government’s contribution towards the approved agencies trust fund has been increased to RM1.7 billion.

Chong said: “Despite the large sums being allocated to this item in the budget year after year, the state government refuses to provide details of the agencies which have received funding under the heading.

“The Legislative Assembly is not informed of the identity of these recipients, thus rendering it impossible to supervise the utilisation of the funds allocated this heading.

“As such, the executive, especially the Chief Minister, since he is the Finance Minster, is not accountable for the money allocated under this heading,” he said, pointing out that it is absurd that details of the allocation of expenditure for an amount of as small as RM1200 are clearly spelt out in the budget while a huge amount exceeding RM1 billion is not properly accounted for.

“This defies the basic principle of political and financial accountability in a democratic system,” Chong said, pointing out that the opacity of this item makes it extremely susceptible to being abused.

He said: “Under the principle of accountability and transparency, the PR Sarawak (government) will put an end to such clandestine fiscal allocations.

“This allocation (RM1.7 billion) in 2012 will be spread out amongst the other ministries,” he said.

On allocations to various ministries, Chong said that the Land Development Ministry headed by James Masing should be dissolved as it gets zero allocation for development next year.

“For the fifth year running, Masing’s ministry has no estimate at all for development fund. All other ministries have some development funds.

“Even the most junior ministry, the Ministry of Welfare, Women and Family Development headed by Fatimah Abdullah has RM2.3 million for its development fund,” said Chong.

He said that the zero fund for Masing’s ministry seemed to confirm the Pakatan Rakyat’s alternative budget announced last Saturday.

“I mentioned in my budget launched last Saturday that the Land Ministry should be dissolved as it overlaps with the Ministry of Rural Development, the Ministry of Agriculture and the Ministry of Planning and Resource Management.

“I thought with Masing being promoted to a senior minister his ministry at least should have some funding, and next year will be the fifth year it has no development fund.

“It has only RM3 million plus for the salaries of the staff in the ministry. So his ministry should be dissolved and Masing’s elevation and promotion to a senior minister is just a political stunt in order to make him happy and feel more important.

“What can you do without such fund? You go to office, surf internet and go back. You don’t have project.

“So Masing should go on retirement and his ministry be dissolved,” suggested Chong.

Registration of households for RM500 aid

21 Oct 2011

KUCHING: The government will start register households with a combined income of RM3,000 or less for the RM500 aid.

The registration will be done through the Inland Revenue Board.

Are the Iban households entitled to the RM500 aid?

Not least than 30,000 Iban households are in the hardcore poor. Even many of the households in Pelita JV oil palm schemes are poor as they are paid between RM12 to RM15 per day.

And who will do it for them? The elected reps or district officers or the Tuai Rumahs?

Budget: Nothing for Sarawak

KUCHING: Sarawak has not been given much attention by Barisan Nasional government in the Budget 2012 although its rural areas are their ‘fixed deposit’ claimed a Sarawak DAP leader.

“There is nothing much in the budget, except the mention of building some roads, supply of electricity and water to the rural areas. Even then we don’t know the amount as we have to share with Sabah,” said Chong Chieng Jen, DAP Secretary.

“Given 20% of the RM232 billion of the total expenditure is for development, how much can Sarawak get for its development? In this type of budget, Sarawak roads will remain substandard forever.

“The amount of money given to Sarawak for its development does not commensurate with its contribution to the national coffer,” said Chong, who is the Bandar Kuching MP.

Commenting on the Budget 2012, he said: “For the past 14 years running the nation has a total deficit amounting to more than RM436 billion.

“The next year budget has lot of goodies. Where will money for all these come from? And I think the only way for the government to finance all these is to obtain loans.

“We expect to incur RM45 billion deficit, and if you add this, our deficit will easily come to RM500 billion. This will be more than 50% of GDP,” he said, pointing out the Greece went bankrupt when its deficits reached 67% of its GDP.

“We are very near towards that direction,” he warned, describing the budget as a very unhealthy one.

He said that 80% of the nation’s budget is for administrative operations and emolument, while 20% is for the development fund.

“Funds for development projects such as roads will help to stimulate our economy,” Chong said, suggesting that the balanced budget should be 60% for administrative operations and 40% for development.

He said that the imbalanced budget had been going on for the past few years due to the over sized civil service.

“For this year, we see the emolument of 1.2 million civil servants, and the amount spent on this is more than the whole amount of development fund for the whole country. This is very inefficient use of money.

“That is really shocking,” he added.

Chong welcomed the government’s allocations of fund for Chinese and Mission schools and RM500 for a poor family, RM100 each for school children and RM200 each for university students, pointing out that the only good feeling is that something is better than nothing.

“But the government can’t really solve the financial burden of the poor. It does not address the poverty issue unlike our Alternative Budget.

“We give monthly allowance to the poor, and yet we can manage to reduce the expenditure.

“The main difference between the BN budget and alternative budget is that we emphasise on open tender, anti-corruption and the efficient use of resources, where as the BN budget is deafening silent on anti-corruption, cronyism, wastages and leakages,” he said.

Chong recalled that during the times of Prime Minister Abdullah Ahmad Badawi, there was a lot of ‘hot air’ against corruption.

“At least there was some air. But this time there is no iota of air against corruption. I think he has resigned to the fact that corruption is a way of life,” he said.

Meanwhile, Sarawak BN leaders heaped praises on the Budget, describing it as people’s friendly and the government’s concern for all levels of society.

“While developing and transforming the economy of the country, the government is also helping to reduce the burden of the people,” said Social Development Minister William Mawan Ikom.

He said that the budget covers the basic needs of the rural society and is able to help improve their livelihood.

“No one is left in the announcement and the BN government has fulfilled its promises and realises what is needed by the people,” said Mawan, who is also the President of Sarawak Progressive Democratic Party.

Another Dayak leader James Masing, who is Parti Rakyat Sarawak President, said that the budget allocated to rural infrastructures is Najib’s clear understanding of the need of accessibility among rural population.

“No amount of goodwill can eradicate rural poverty if rural land remains inaccessible,” said Masing, who is Land Development Minister.

On allocation for education, he said: “Education budget is a budget of a developed nation, because it gives free education to Malaysians till form five.

“This budget recognises the value of educated manpower to move the nation forward,” he added.